The CAD to PKR exchange rate currently exhibits a bullish bias as the Canadian dollar remains strong against the Pakistani rupee, trading at 90-day highs near 205.0.
Key drivers include the interest rate differential between the Bank of Canada maintaining its rate at 2.25% while the Pakistani economy faces challenges, potentially leading to depreciation pressures on the PKR. Additionally, stable retail sales in Canada and a strong jobs report have bolstered confidence in the CAD. Moreover, while oil prices are currently slightly down, stable demand for oil has historically supported the loonie due to its status as a major oil exporter.
The expected near-term trading range suggests continued fluctuations around the current price with potential for further CAD strength. Upside risks include a rebound in global oil prices that could further strengthen the CAD, while downside risks stem from shifts in U.S. economic policy or growing concerns in the Pakistani economy that could negatively affect PKR sentiment.
